Assessment Task 2: PRACTICAL ASSESSMENT
Task summary
The Case Study is a hypothetical situation which will not require you to have access to a workplace, although, your past and present workplace experiences may help with the responses you provide. You will be expected to encounter similar situations to these in the future as you work in financial services.
In real life, you will be required to reconcile and monitor subsidiary accounts, identify bad and doubtful debts and plan a recovery action, record creditor invoices, and remit payments to sundry creditors. This assessment will help you demonstrate skill requirements in such situations.
Deliver
Case Study 1.4 – Roleplay
Case Study 1.6 - Roleplay
Case study 3.2.1 -Role play
Submit
• FNSACC312 – Case Study 1.4 - Remittance Advice
• FNSACC312 – Case Study 1.7 - Unpaid Account
• FNSACC312 – Case Study 1.8 - Electronic Payment
• FNSACC312 – ABA File – WB C.aba
• FNSACC312 – Case Study 1.8 - Remittance Advice
• FNSACC312 – Case Study 1.9 - Reconciliation Report
• FNSACC312 – Case Study 1.10 Reports - Supplier Ledger
• FNSACC312 – Case Study 1.10 Reports - Payables Reconciliation Detail
• FNSACC312 – Case Study 1.10 Reports - General Ledger
• FNSACC312 – Case Study 1.10 Reports - Balance Sheet
• FNSACC312 – Case Study 1.10 Reports - GST Report
• FNSACC312 – Case Study 1.10 Reports - Profit and Loss
• FNSACC312 – Case Study 1.10 Reports - Supplier Payments
• FNSACC312 – Case Study 2.2 - Invoice Louise Wales
• FNSACC312 – Case Study 2.8 - Bank Deposit Slip
• FNSACC312 – Case Study 2.10 - Activity Statement
• FNSACC312 – Case Study 2.11 - Bank Reconciliation
• FNSACC312 – Case Study 2.12 Reports - Customer Ledger
• FNSACC312 – Case Study 2.12 Reports - Receivables Reconciliation
• FNSACC312 – Case Study 3.1.1. – Recovery Plan 1
• FNSACC312 – Case Study 3.1.1. – Recovery Plan 2
• FNSACC312 – Case Study 3.3.1 – Letter of Demand (Kevin)
• FNSACC312 – Case Study 3.3.1 – Letter of Demand (Kal)
• FNSACC312 – Case Study 3.4 - Screenshot
• FNSACC312 – Case Study 4.1 Reports – All Transactions
• FNSACC312 – Case Study 4.1 Reports – Balance Sheet
• FNSACC312 – Case Study 4.1 Reports – Profit and Loss
Assessment criteria
For your performance to be deemed satisfactory in this assessment task, you must satisfactorily address all of the assessment criteria. If part of this task is not satisfactorily completed, you will be asked to complete further assessment to demonstrate competence.
Re-submission opportunities
You will be provided feedback on your performance by the Assessor. The feedback will indicate if you have satisfactorily addressed the requirements of each part of this task.
If any parts of the task are not satisfactorily completed, the assessor will explain why, and provide you written feedback along with guidance on what you must undertake to demonstrate satisfactory performance.
You have the right to appeal the outcome of assessment decisions if you feel that you have been dealt with unfairly or have other appropriate grounds for an appeal.
You are encouraged to consult with the assessor prior to attempting this task if you do not understand any part of this task or if you have any learning issues or needs that may hinder you when attempting any part of the assessment.

Part 1: Accounts Payable
Part 1 of the practical assessment deals with accounts payable. The tasks included in this part of the assessment cover the following activities:
a. Planning recovery action
? Reviewing accounts payable
o Invoices received
o Cheque requisitions
o Statement of accounts
b. Remitting payments to creditors
? Making payments
o BPAY payments
o Electronic transfer payments
? Reconciling cheque accounts
Refer to the scenario on the following page to complete the tasks in this part of the case study.

SCENARIO
Olivia Reins Dental Group is owned by Olivia Reins and her partners Alphonse Fache, Edward Mills, and Roberta Wong. They are dentists based in Sydney, New South Wales, Australia.
They offer the following services:
Comprehensive Oral Health Care
Regular Check-up and Cleaning
Orthodontics
Treatment for Dental Trauma
Care of Primary Teeth
Root Canal Therapy
Special Needs
Olivia Reins Dental Group is a professional partnership. It has an ABN and is registered for GST reporting on a cash basis.
Olivia and her partners employ a bookkeeper (you) to monitor and look after the accounts of the business. The bookkeeper has the permission to sign cheques and pay accounts online.
The company purchases dental supplies from Teeth and Teeth Necessities and other supplies from Sydney Supplies and Strocc Supermarket. It is leasing its space from Jaka Leasing and uses the services of the following:
? AdVisable Advertising Agency
? Cool Mountain Water Supply
? Energy Australia
? Hutcherson Telecommunications
? Speedway Gas Station
? Sydney Water

Excerpt from Olivia Reins Dental Group Policies and Procedures Manual
PURCHASING
1. Olivia personally purchases all dental supplies needed by the business. A purchase order is rarely used because the supplies are usually bought over the counter by Olivia. Dental supplies are bought from Teeth and Teeth Necessities.
2. Supplies and business needs other than dental supplies are usually purchased by the bookkeeper.
3. At the time of purchase, a printed invoice is received listing all items and total cost of supplies. All details are checked for accuracy. Should there be a discrepancy, a telephone call is made to the supplier and a new tax invoice is requested.
4. Suppliers usually send a statement at the end of the month, however, some invoices are payable on invoice, not statement.
5. On receipt of the statement, the bookkeeper checks this statement with the invoices received at the time of the purchase.
6. Credit terms vary from supplier to supplier. No discounts are allowed by any suppliers. Olivia is given a trade price at the time of purchase.
SUPPLIER PAYMENT PROCEDURES
1. Upon receipt of an invoice, the validity and accuracy of the invoice must be checked before entering into the data file.
2. Statements received are reconciled with invoices received. And the invoices are entered into the computerised system.
3. Due dates of supplier invoices are monitored using the “To Do List”.
4. Accounts are paid by BPAY, electronic transfer or cheque. All cheques are accompanied by a remittance slip. Electronic payments register must be authorised by Olivia before uploading to the bank. Remittance advice is provided to the customer once payment has been made.
5. Expenses incurred by the bookkeeper (e.g. office supplies) must be authorised by Olivia using a Cheque Requisition Slip.
6. The bookkeeper is authorised to pay accounts by BPAY, transfer electronic payments (after approval by Olivia) and sign cheques.
7. At the end of the month, a payables reconciliation report is printed to make sure the Payables Subsidiary Ledger and General Ledger reconcile. This report includes the supplier’s invoice number and due date.
This report (excluding the ageing details) is exported to Excel and reviewed by Olivia, who authorises the accounts (reflected in the Excel printout) to be paid by the bookkeeper, who must consider the cash flow situation.
1.1: Preview Existing Data
Steps to take
1. Open the data file Olivia Reins Dental Group.myo and sign in as Administrator with no password.
? View the Accounts List
? View the Card File
? Read the Policies and Procedures
You can download the file through the link below:
Olivia Reins Dental Group MYOB file
2. Include your name in the company name field as the business name for printout identification purposes.
3. Check that the file you are using is in the current financial year. If not, start a new financial year.
Guidance: For the purpose of this assessment, you are working in the month of May of the current year 2017. Remember to back up on a regular basis.
This is only an intermediate step for the candidate to complete the next tasks.
1.2: Reviewing Invoices Received
Olivia has purchased the following materials from Teeth and Teeth Necessities, taking the goods and receiving the invoice at the time of purchase.
Steps to take
1. Check the validity and accuracy of the following invoices. Note any discrepancies and discuss with your assessor, where necessary.
2. Enter the corrected tax invoices in your data file. Individual items are not recorded – just the total of the tax invoice.
3. Remember to indicate that the invoice has been entered, see Policies and Procedures.

1.2.1 Refer to the invoice below:
Teeth and Teeth Necessities Tax Invoice
28 Carlton Right 169
REID NSW 2627
Phone (02) 6532 8869 Fax (02) 6532 8867
TO: Olivia Reins Dental Group
226 Beau Lake St, Southbridge
REID NSW 2627
Date: 3/5/2017 Purchase Order Number: Olivia Terms: 30 days
Quantity Item Number Description Unit Price
inc. GST Total inc. GST Tax Code
10 B31 Disposable Bib Holders $18.90 $189.00
60 B28 Bib Chains – Non Autoclavable 1.00 60.00
20 A03 Full Chair Sleeves 39.00 780.00
30 D23 Evacuation/Suction Tips 5.50 165.00
30 D22 Saliva Ejectors 5.50 165.00
2 C01 Surgical Blades 31.00 62.00
10 D47 Separating Strips Roll 11.50 115.00
20 D31 Self-Etching and Self-Adhesive 59.90 1,198.00
20 F09 Temporary Filling Material 22.80 456.00
15 F08 Hydrogen Peroxide 35% 23.50 352.50
20 F11 Alcohol 95/5 14.50 290.00
10 B41 Lightly Powdered Gloves 9.30 93.00
Amount of GST in this invoice: $356.86 $3,925.50
Review the invoice and note any discrepancies you might find. Answer the questions that follow.
Guidance: Before commencing your transaction in your data file, complete all assessments included in this task.

1. What discrepancies did you find (if any)?

2. What is the consequence if this error is not corrected?


1.2.2. Refer to the invoice below:
Teeth and Teeth Necessities Tax Invoice
28 Carlton Right 307
REID NSW 2627
Phone (02) 6532 8869 Fax (02) 6532 8867
ABN: 88 143 526 096
TO: Olivia Reins Dental Group
226 Beau lake St, Southbridge
REID NSW 2627
Date: 5/5/2017 Purchase Order Number: Olivia Terms: 30 days
Quantity Item Number
Description Unit Price
inc GST Total inc GST Tax Code
5 B22 Powder-Free Exam Gloves $7.95 $39.75
2 G03 Amalgamator 275.00 550.00
7 F12 Long Term Temporary Cement 49.10 343.70
8 G02 Absorbable Sutures 114.00 912.00
4 D48 Spongostan 24’s 135.00 540.00
30 G01 Dental Needles 19.20 576.00
Amount of GST in this invoice: $269.22 $2,961.45
Review the invoice and note any discrepancies you might find.
3. What discrepancies did you find (if any)?


1.3: Entering Invoices
Steps to take
1. Enter the following invoices received checking for validity and accuracy.
2. Create a new card for suppliers if needed.
3. Before accepting the cheque, check the cheque for accuracy.
a) Hutcherson Telecommunications
Hutcherson Telecommunications Tax Invoice
ABN Quoted Ref: 4154746
TO: Olivia Reins Dental Group
226 Beau lake St, Southbridge
REID NSW 2627
Date: 06/05/2017 Phone Number: 07 46366011 Due Date: 20th of the month
Details of Telephone Calls listed. $504.00
Amount of GST in this invoice: $45.82
b) Jaka Leasing
Jaka Leasing Tax Invoice
ABN Quoted 2137
TO: Olivia Reins Dental Group
226 Beau lake St, Southbridge
REID NSW 2627
Date: 08/05/2017 Terms: 7 days
Prepaid Rent for the month @ $22,000 $22,000 inc GST
BSB Number: 111-777
Account Number: 12034587

c) Toothy Equipment*
Toothy Equipment Tax Invoice
59 097 631 340 983
44 Freedom Ave, KHALIL NSW 2444
TO: Olivia Reins Dental Group
226 Beau lake St, Southbridge
REID NSW 2627
Date: 10/056/2017 Reference: Olivia Terms: 14 days
A-Dec 500 Dental Chair $13,195.00
Amount of GST in this invoice: $1,199.55
BSB Number: 361-502
Account Number: 4569741
* this is purchase of dental equipment
4. On 7 May 2017, some of the supplies purchased from Teeth and Teeth Necessities on Invoice #307 were returned – wasted.
-1 G03 Amalgamator $275.00 -$275.00* GST
*GST inclusive
Adjustment note 25 was received on 7 May.
Enter the above adjustment and settle against the original invoice.
Guidance: The date of allocation should be the same date as the adjustment note.

1.4: Cheque Requisition
The bookkeeper pledged a $300 sponsorship towards the cost of the cooking displays at the local show.
Steps to take
1. Enter the following tax invoice in your data file.
Local Show Society Invoice
ABN 35 933 444 111 6561
Showgrounds Road
KALEEN NSW 2617
TO: Olivia Reins Dental Group
226 Beau lake St, Southbridge
REID NSW 2627
Date: 14/5/2017 Purchased by the bookkeeper Terms: 14 DAYS
Sponsorship $300.00
NOT REGISTERED FOR GST.
Guidance: You may have to enter missing suppliers and new account codes into the card file if needed.

Steps to take
2. A manual check is to be issued for the sponsorship of a local cooking show. You need to obtain authorisation from Olivia Reins. She has to sign the Cheque Requisition Slip together with the invoice in step 1 for proper documentation.
A Cheque Requisition Form should be completed with all pertinent information and required approval. This protocol is part of the procedures in place to ensure that there is control and to prevent fraud. You are to give Olivia a heads-up by placing a call while sending her the Cheque Requisition Slip for her to sign.
Before Olivia Reins can sign the form, all details on the Cheque Requisition Slip must be filled in for signature. Complete the Cheque Requisition Slip below to attach to the invoice in Step 1.
CHEQUE REQUISITION SLIP
I certify that the services described on the attached tax invoice are accurate and the price has been agreed to.
Reason for expenditure
General ledger allocation A/c following policies and procedures of the organisation
Amount
? GST
? FRE
? GNR
Signed by:
Authorised by: Olivia Reins will sign here
Entered in MYOB AccountRight by: Date Entered:
Date of Payment: Payment Ref: 1003
Entered in MYOB AccountRight by: Date Entered:
(continued)
For this activity, there is no specific script to be followed. However, you must demonstrate that you are requesting for the authorisation of the release of a cheque meant to sponsor a local cooking show from Olivia Reins.
Follow the steps below as your guide to completing this activity.
Read all instructions carefully before starting.
Roleplaying Activity
Resources required
To complete this roleplaying activity, you will need access to the following:
?
One (1) volunteer to take the role of Olivia Reins
?
A safe environment to conduct the roleplaying activity in
(e.g. living room of your house)
Steps to take
a. Review the criteria items in the roleplaying activity Assessor’s Checklist below. Note that you must demonstrate ALL of the criteria items outlined in this checklist. Guidance is also provided in the checklist to help you complete this activity.
FNSACC312 – Case Study 1.4 - Roleplay
Roleplaying Activity – Assessor’s Checklist
(The candidate is to leave this blank. This is for the assessor’s use only.)
Did the candidate………. YES NO Assessor’s Comments
1. Prior to the roleplaying activity, introduce themselves as the candidate who is taking the assessment. ?
?

2. Demonstrate active listening skills by:
• Asking questions
• Responding appropriately ?
?

2. During the roleplaying activity, relay what the cheque is for and briefly discuss to Olivia why you are sponsoring the local cooking show.
Guidance: The candidate must relay to Olivia what the cheque is for and the reason why the business is sponsoring a local cooking show. ?
?

3. Ask for Olivia’s authorisation by asking her to fill in the Cheque Requisition Form. ?
?

4. Thank Olivia for granting the authorisation. ?
?


Steps to take
3. Write out the cheque to pay the amount owing to the Local Show Society on 15/month.
Date:
Pay:
Details:
FWD
This Cheque
Balance
001003 Bendigo Bank
3/75 Elizabeth St., Sydney NSW 2000 001003
Date:
Pay
OR BEARER

The sum of
$
Signature:

DRAWER
Olivia Reins Dental Group
[NOT NEGOTIABLE]
-001001 -014-‘667: 1245784-

Steps to take
4. Enter the cheque in your data file and indicate that the payment has been entered. Remember to enter the payment details on the Cheque Requisition Slip.
5. Save as pdf formatthe remittance advice to attach to the cheque.
FNSACC312 – Case Study 1.4 – Remittance Advice
1.5: BPAY Payments
BPAY: Pay the amount owing to Hutcherson Telecommunications on 15 May. This account was paid using BPAY.

1.6: Reviewing Statements
The following statement of account has been received:
Teeth and Teeth Necessities STATEMENT
ABN 88 143 526 096
For the Month of
28 Carlton Right May
REID NSW 2627
Phone (02) 6532 8869 Fax (02) 6532 8867

TO: Olivia Reins Dental Group
226 Beau lake St, Southbridge
REID NSW 2627
Date Reference Description Sales
[Debits] Payments/
Adjustments
[Credits] Balance
1/month Balance from previous month 0.00
1/month Inv 169 Sales $3,925.50 $3,925.50
Inv 307 Sales $2,961.45 $6,886.95
Inv 398 Sales $4,740.00 $11,626.95
Adj 25 Adjustment $275.00 $11,351.95
3/month
4/month
60 days Overdue 30 days Overdue Current Total Amount Owing
$11,351.95 $11,351.95
Steps to take
1. Check the statement for accuracy against the data in your data file and answer the question that follows.
1. In the space provided below, list any discrepancies you find and outline what you would do to correct them if any.
Discrepancies How would you correct these?

Steps to take
2. For this activity:
a. You are to call up Olivia Reins to check if the invoice indeed belongs to Olivia Reins Dental Group.
b. You are to call up Teeth and Teeth Necessities to address the discrepancy in the statement of account.
There is no specific script to be followed for this activity. However, you must demonstrate that you have called Olivia Reins and Teeth and Teeth Necessities to address any discrepancies you have found in the statement of account.
Follow the steps outlined below as your guide to completing this activity.
Read all instructions carefully before starting.

Roleplaying Activity
Resources required
To complete this roleplaying activity, you will need access to the following:
?
One volunteer to take the role of Olivia Reins
?
One (1) volunteer to take the role of a representative from Teeth and Teeth Necessities
?
A safe environment to conduct the roleplaying activity in
(e.g. living room of your house)
Steps to take
a. Review the criteria items in the roleplaying activity Assessor’s Checklist below. Note that you must demonstrate ALL of the criteria items outlined in this checklist. Guidance is also provided in the checklist to help you complete this activity.
FNSACC312 – Case Study 1.6 - Roleplay


Roleplaying Activity – Assessor’s Checklist
(The candidate is to leave this blank. This is for the assessor’s use only.)
In the video submission, the candidate… YES NO Assessor’s Comments
1. Prior to the roleplaying activity, introduce themselves as the candidate who is taking the assessment. ?
?

3. Demonstrate active listening skills by:
• Asking questions
• Responding appropriately ?
?

2. During the roleplaying activity, call up Olivia, introduce themselves and explain why they’re calling.
Guidance: The candidate must relay to Olivia that they discovered a discrepancy amount in the statement of account set by Teeth and Teeth Necessities. ?
?

3. Confirm with Olivia if the discrepancy amount belongs to Olivia Reins Dental Group since she is the one responsible for purchasing supplies.
Guidance: The candidate must ask Olivia if the amount belongs to the business, considering that she handles the purchases of supplies herself. ?
?

4. Thank Olivia for confirming that the discrepancy amount does not belong to the business and tell her that they are calling Teeth and Teeth Necessities to inform them about the situation. ?
?

5. Call up Teeth and Teeth Necessities and introduce themselves properly and explain why they called.
Guidance: The candidate must explain to Teeth and Teeth Necessities that they discovered a discrepancy amount in the statement of account they sent to their organisation. ?
?

6. Tell their representative that the discrepancy amount does not belong to Olivia Reins Dental Group and that they have confirmed this with their authorised purchaser Olivia Reins herself.
Guidance: The candidate should ask Teeth and Teeth Necessities to correct the statement of account. ?
?

7. Thank their representative for agreeing to address the issue soon and sending a revised statement of account as soon as possible. ?
?

Steps to take
3. Complete the following table to reflect what should be in the adjusted statement.
DATE REFERENCE DESCRIPTION SALES
[DEBITS] PAYMENTS/
ADJUSTMENTS
[CREDITS] BALANCE
1/month Balance from previous month 0.00

60 days Overdue 30 days Overdue Current Total Amount Owing

1.7: Unpaid Accounts
Steps to take
1. Prepare the required list of unpaid accounts report on the last day of the month (31 May) for payment authorisation.
Guidance: Remove any information that isn’t needed. Prepare the report of Aged Payables (detail) in an excel spreadsheet format.
2. On the space provided below, write an email seeking authorisation to pay the accounts in the report. Submit the list of unpaid accounts for approval in an Excel report.
Guidance:
Accounts to be paid must be approved by your assessor in the above report.
- If you are doing this assessment by distance learning, your workplace assessor will send the approval to you via email or training portal.
- There is no need to submit an actual email.
Save and submit the document using the filename
FNSACC312 – Case Study 1.7 - Unpaid Account

To:
Subject:
Message:

1.8: Electronic Transfer Payments
Steps to take
1. Setup the file for electronic banking.
Go to the Bank Account in the Accounts List and enter the banking details:
Bank Code = BB
Bank ID = 66700
2. Pay these accounts as per Olivia’s authorisation below.

3. Save as pdf format the following documents.
a. Electronic payment register
Save and submit the file.
FNSACC312 – Case Study 1.8 – Electronic Payment
b. ABA file ready to upload to the bank.
Save and submit the file as shown below.
FNSACC312 – ABA File – WBC.aba
c. Remittances for the accounts that have been paid.
Save and submit the file.
FNSACC312 – Case Study 1.8 – Remittance Advice
1.9: Reconciling Cheque Accounts
Printed below is the Bank Statement extract received, dated end of May:
BANK STATEMENT
Issued: 2/6/2017 Bank Statement 11 Page 1
Date Transaction Withdrawal Deposit Balance
1/5/2017 Balance 100,000.00 CR
15/5 Local Show Society 300.00 99,700.00 CR
15/5 Hutcherson Telecommunications 504.00 99,196.00 CR
21/5 Account Keeping Fees 50.00 99,146.00 CR
End/month EP0000001 41,806.95 57,339.05 CR
Step to take
1. Reconcile your Cheque Account.
2. Save as pdf format a copy of the bank reconciliation on end of the month before reconciliation showing cleared payments.
Save and submit the file .
FNSACC312 – Case Study 1.9 – Reconciliation Report
3. Reconcile the electronic payments account – balance is “0.”
Guidance: No report is required for this Step.

1.10: Reports Part 1
Steps to take:
1. Save as pdf format the following reports. Remove accounts with $0 balances from the reports.
2. Save and submit the documents as shown below.
a. Supplier Ledger for all suppliers for the period 1/month to end/month.
Guidance: Display transaction amount not debits and credits.
Filename:
FNSACC312 – Case Study 1.10 Reports - Supplier Ledger
b. Payables Reconciliation (detailed) on end/month using a number of days since invoice date ageing.
Guidance: Include accounts with 0 balance.
Filename:
FNSACC312 - Case Study 1.10 Reports - Payables Reconciliation Detail
c. General Ledger Detail for the “month.”
Guidance: Remove any accounts that haven’t had any activity. Remove Job No and Net Activity fields. Only show accounts with Activity.
Filename:
FNSACC312 - Case Study 1.10 Reports - General Ledger

d. Balance Sheet on end/month.
Guidance: Remove any accounts that haven’t had any activities.
Filename:
FNSACC312 - Case Study 1.10 Reports - Balance Sheet
e. GST (Detailed-Cash) report for the month.
Filename:
FNSACC312 - Case Study 1.10 Reports - GST Report
f. Profit and Loss (Accrual) for the month.
Filename:
FNSACC312 - Case Study 1.10 Reports - Profit and Loss
g. Supplier payments history for the month – to be reviewed by Olivia.
Guidance: Include the reconciliation date in the report as evidence of payment withdrawn from the bank.
Filename:
FNSACC312 - Case Study 1.10 Reports - Supplier Payments

Part 2: Accounts Receivable
Part 2 of the case study deals with accounts receivable. The tasks included in this part of the assessment cover the following activities:
a) Reconciling and monitoring financial accounts receivable systems
? Entering sales invoices
? Making adjustments
? Entering payments:
o Cash
o Cheque
o Electronic transfer
? Reconciling bank statements
b) Identifying bad and doubtful debts
Refer to the scenario to complete the tasks in this part of the case study.
SCENARIO
Olivia Reins Dental Group is owned by Olivia Reins and her partners Alphonse Fache, Edward Mills, and Roberta Wong. They are dentists based in Sydney, New South Wales, Australia.
They offer the following services:
Comprehensive Oral Health Care
Regular Check-up and Cleaning
Orthodontics
Treatment for Dental Trauma
Care of Primary Teeth
Root Canal Therapy
Special Needs

Extract from Olivia Reins Dental Group Policies and Procedures Manual
DENTAL SERVICES BILLING PROCEDURES
1. A job card is completed with the necessary details when an appointment is set up over the phone. Include the job card number in the customer PO field on the invoice.
2. The job card is completed and signed by the customer after the appointment.
3. An invoice is given to the customer as soon as possible. For individuals, the invoice is tendered right after the appointment. For companies, invoices will be sent within three (3) days’ time.
PAYMENT OF CUSTOMER ACCOUNTS PROCEDURES
1. Under the Privacy Act 1988, details kept must be accurate and not given to any person without the consent of the customer.
2. Payments in the form of cash and cheques are processed immediately upon receipt, stored in the safe during the day, and allocated to “undeposited funds” in MYOB AccountRight or MYOB AccountEdge Pro. A receipt is written out for accounts paid in cash over the counter.
3. Any payment resulting in an overpayment is recorded as credit and applied to a future invoice.
4. Bank deposit slips are printed and submitted to the bank with a credit summary slip when cash and cheques are banked.
5. Cheques are only accepted from long-term customers. On receipt of the cheque, the date, payee, amounts and signature must be checked.
6. Dishonoured cheques are reversed, not deleted.
7. Monthly statements are printed by the 5th of the following month.
8. Payment terms are as follows:
Amount Range Payment Term Penalty in case of default
Less than or equal to $2,000 C.O.D
$2,001 - $30,000 Net 7
$30,001 - $100,000 2/10 Net 30 10%
Over $100,000 5/30 Varies from 90 days to 300 days 30%
9. At the end of each month, a “Receivables Reconciliation” report is printed to identify overdue accounts and the accuracy of the ledgers.
CUSTOMER CREDIT POLICY
1. A credit application is completed when an account is set up. A phone call is made to two nominated referees to check on the customers payment history.
2. Overdue accounts up to 30 days: an overdue reminder sticker will be attached to the next statement.
3. Accounts overdue more than 30 days: a telephone call made to assess the reason for non-payment and perhaps negotiate a payment plan. A note is made in the contact name in MYOB. Keep trying to contact the debtor.
4. Accounts overdue 60 days: send first collection letter notifying the intention to take action and review credit terms and place credit on hold [entered in MYOB AccountRight & Mac Version]. A note should be made in the contact log in the MYOB AccountRight contact & Mac version.
5. Account overdue 90 or more days: a spreadsheet/report is prepared documenting the following: accounts receivable debt; recovery type; reason for the debt recovery plan. This is then ratified by the business owner. This spreadsheet is paramount to provide a record of comments/communications/actions taken to try to collect the debt.
6. A letter of demand will be sent to the customer asking for payment within 14 days. If this fails, the MYOB Debt Recovery service will be used to collect the debt if more than $200. Small debts $200 will be written off as a bad debt. The Debt Collection Guideline for Collectors and Creditors must be adhered to at all time.
7. Legal action will only be used as a last resort.
8. All bad debt recovery reports are filed in the special file for “Bad Debt Recoveries”.

2.1: Preview Existing Data
Steps to take
1. View the following to familiarise yourself with the data file:
? Accounts list
? Unpaid tax invoices issued to customers
? Read the Policies and Procedures
2. Check that the file you are using is in the current financial year. If not, start a new financial year.
Guidance: For the purpose of this assessment, you are working in the month of May of 2017. Remember to back up your files on a regular basis.
2.2: Entering a Sales Invoice
The following service rendered to Louise Wales has been completed:


Steps to take
1. Enter the job details as Sale Invoice #27 in your data file.
2. Save as pdf format invoice for Louise Wales.
Save and submit a copy of the invoice as shown below.
FNSACC312 – Case Study 2.2 - Invoice Louise Wales
Guidance: Use AccountRight’s plain paper invoice.
2.3: Making Adjustments
Edward Mills has realised that the treatment for dental trauma charged to Rue Andrews, a 32-year-old patient, was overstated by $10,000. This was entered into the system on 16 May 2017.
Steps to take
1. Enter an adjustment note on 17 May to send to Rue Andrews.
2. Remember to apply it against the original invoice date when the adjustment invoice is raised.
Guidance: You are not required to save as pdf format a copy of the adjustment note.

2.4: Entering Cheque Payments
Refer to the following. Note that as per the policies and procedures, the handwritten Tax Invoice Number must be recorded in the body of the electronic invoice.
DUPLICATE COPY OF HANDWRITTEN INVOICE PLUS CHEQUE
Olivia Reins Dental Group
Tax Invoice
ABN 84 158 523 623 32
Gold Card No. 750788
226 Beau lake St, Southbridge
REID NSW 2627
TO: University of Sydney
Providence St
Hoult Act 2617
Date: 18 May 2017 Terms: COD
Description Total ex GST Tax Code
Attended to four (4) employees ($1,000 x 4) $4,000.00 FRE

TOTAL including GST $4,000.00
Northpac Bank
Wiretown Sydney 4344 001200
Date: 18 June 2017
Pay Olivia Reins Dental Group OR BEARER
The sum of Four thousand dollars
$4,000-00
DRAWER
University of Sydney NOT NEGOTIABLE A Robbins
-001200 -062-‘001: 4512739-
Steps to take
1. Create a new card for University of Sydney. Remember the credit terms are COD.
2. Before accepting the cheque, check the cheque details for accuracy.
Guidance: Before commencing your transaction in your data file, complete all assessments included in this task.
Steps to take
1. Assuming the problem has been rectified, enter the sales invoice provided and the cheque payment. Refer to relevant policies and procedures for cheque payments.
2.5: Entering Cash Payments
$33,000.50 cash was received from Dylan Ackles on 20 May as payment of handwritten Invoice 31 for the treatment of dental trauma.
Steps to take
1. Enter the invoice for the treatment of dental trauma for Dylan Ackles, a regular customer, following the appropriate policies and procedures.
Guidance: You may notice he already has a previously unpaid invoice dated 22 April.
2. Signing the receipt on behalf of the business, complete the details required below.
3. Record the receipt of cash into your data file into the undeposited funds account.
Olivia Reins Dental Group Receipt 31
226 Beau lake St, Southbridge
REID NSW 2627 ……………Date: …...

Received from: ………………………………………………………..…
The amount of only and No/Nil…….cents. .............
Reason for payment: …………………………….…………..
Per ……………...
2.5.1: Written Questions
Based on the previous task you completed, answer the questions below.
1. What discrepancies did you find (if any)?

2. How should this discrepancy be resolved?

2.6: Entering Sales
The following Minerva Pall job has been completed.
Enter the following job details as a sale in your data file:

Guidance: As per the policies and procedures, make sure to record the job number on the invoice.

2.7: Entering Cheque Payments
The following cheque was received as payment of Tax Invoice 13.
Northpac Bank
Wiretown Sydney 4344 001317
Date: 24 May 2017
Pay Olivia Reins Dental Group OR BEARER
The sum of Four thousand dollars
$187,000-00
DRAWER
Feve Landers Designs NOT NEGOTIABLE C Torres
-001317 -084-‘001: 9021645-
Steps to take
1. Check for discrepancies between monies owed and monies paid.
2. Enter the cheque received.
Guidance: Follow the policies and procedures of the business to deal with any discrepancies.
3. Answer the questions below about any identified discrepancies.
4. Upload a screenshot of the deposit in MYOB.
2.8: Depositing Payments Received
Steps to take
1. On 25 May 2017, bank the cheques and cash received to date.
2. Save as pdf format the bank deposit slip on 25 May.
Save and submit a copy of the bank deposit slip as shown below.
FNSACC312 – Case Study 2.8 - Bank Deposit Slip
3. Check the accuracy of the deposit with details of money received during the month.
2.9: Entering Electronic Transfer Payments
The following fax was received from Clairborne Silver.
Clairborne Silver
56 Angels Street
Halle NSW 2619
FAX to: Olivia Reins Dental Group Date: 28 May 2017
SUBJECT: REMITTANCE ADVICE
Payment of the following invoice has been made to your Bank Account by electronic transfer:
Details Amount
Invoice 7 $239,000.00
Less discount -$2,390.00
Payment $236,610.00
[Do not save as pdf formatthe Discount Invoice]
Steps to take
1. Link a sales account for discounts. Select an appropriate account for the cash discount.
2. Enter the payment details in your data file accounting for the cash discount.
2.10: Activity Statements
Steps to take
1. Save as pdf format an Activity Summary for the whole month of May.
Save and submit a copy of the Activity Summary as shown below.
FNSACC312 – Case Study 2.10 – Activity Statement
Guidance: Use AccountRight’s plain paper statement.
2. Draft a note that will be sent along with the Activity Summary to the supervisor, Lee Pines, and manager, Mina Lyons, of Feve Landers Designs briefly describing the report.

Step 2
To:
Subject:

2.11: Reconciling Bank Statement
Refer to the bank statement extract below:
BANK STATEMENT
Issued: 2/6/2017 Date Bank Statement 11 Page 1
Date Transaction Withdrawal Deposit Balance
30/April Balance 57,389.05 CR
21/5 Account Keeping Fees 50.00 57,339.05 CR
25/5 Deposit 224,000.00 281,339.05 CR
28/5 Clairborne Silver 227,050.00 508,389.05 CR
End of month Balance 508,389.05 CR
Steps to take
1. Reconcile the bank statement at the end of month.
2. Save as pdf format a copy of the Bank Reconciliation showing cleared and uncleared items.
Save and submit a copy of the Bank Reconciliation as shown below.
FNSACC312 – Case Study 2.11 – Bank Reconciliation
3. Reconcile the undeposited funds, there is no printout required for this.

2.12 Reports Part 2
Steps to take
1. Save as pdf format the following reports. Save and submit the documents using the filename as specified:
a) Customer Ledger for all customers for the whole month of May
Guidance: Display debits and credits, not transaction amount and make the memo field wider.
FNSACC312 – Case Study 2.12 Reports – Customer Ledger
b) Receivables Reconciliation [Detail] report selecting days overdue using invoice terms.

FNSACC312 – Case Study 2.12 Reports – Receivables Reconciliation
2. Answer the questions in the spaces provided for you below.
Answer the following questions:
1. What is the amount owing by customers at end/month?
2. Display the balance sheet at the end of the month. What is the amount owing in the trade debtors A/c in the balance sheet?

3. Does the answer in (1) reconcile with the answer in (2)?


Part 3: Bad Debts and Doubtful Debts
Part 3 of this assessment deals with bad and doubtful debts. The tasks included in this part of the assessment cover the following activities:
? Reviewing unpaid invoices
? Identifying bad and doubtful debts
? Collection of debts
? Writing off bad debts
Excerpt from Olivia Reins Dental Group Policies and Procedures Manual
CUSTOMER CREDIT POLICY
1. A credit application is completed when an account is set up. A phone call is made to two nominated referees checking on the Customers payment history.
2. Overdue account up to 30 days: an overdue reminder sticker will be attached to the next statement. Account overdue more than 30 days: a telephone call made to assess the reason for non-payment and perhaps negotiate a payment plan. A note is made against the contact in MYOB. Keep trying to contact the debtor.
3. Account overdue 60 days: send first collection letter notifying the intention to take action and review credit terms and place credit on hold (entered in MYOB AccountRight & Mac version). A note should be made in MYOB against in the contact log. Keep trying to contact the debtor.
4. Account overdue 90 or more days: a spreadsheet/report is prepared documenting the following: accounts receivable debt, recovery type; the reason for the debt, and recovery plan. This is then ratified by the business owner. This spreadsheet is paramount to provide a record of comments/communications/actions taken to try to collect the debt.
A letter of demand will be sent to the customer asking for payment within 14 days. If this fails, the MYOB Debt Recovery service will be used to collect the debt if more than $200. Small debts $200 will be written off as a bad debt. The Debt Collection Guideline for Collectors and Creditors must be adhered to at all time.
5. Legal action will only be used as a last resort.

3.1: Reviewing Unpaid Invoices
3.1.1: Review Client Compliance with Terms and Conditions
Steps to take
1. Study the following table. The table below outlines overdue accounts for the last three (3) months:

2. Review the company policies and procedures for recovering debts.
3. Assume you are reviewing this report on the same day it was generated (31 May 2017), identify the customers you can make contact with to facilitate debt collection.
Customers you can contact to facilitate debt collection:
i.
ii.
iii.
4. Access the Recovery Plan template through the following link:
Recovery Plan Template
(username: newusername password: newpassword)
Use the template to develop two (2) debt recovery plans for the clients with overdue accounts previously identified. The plans developed in this task must include:
? one (1) recovery plan following the organisation’s regular procedure of debt recovery
? one (1) recovery plan including the initiation of legal action as last resort.
Each plan must include:
? a clear outline of the plan of action for the specific debt recovery plan, including at least four (4) measures to pursue debt recovery
? timeframes to be followed
Guidance: Each measure must be in line with organisational policies, guidelines and timeframes given at the beginning of Part 3 of this case study.
When developing the plans, ensure to follow these:
? Record information accurately using correct spelling, grammar, and terminology.
? Ensure to follow legislative requirements (e.g. Australian Consumer Law, Debt Collection Guideline for Collectors and Creditors) when coming up with debt recovery measures.
5. Save and submit the completed Recovery Plans using the following filenames:

FNSACC312 – Case Study 3.1.1– Recovery Plan 1

FNSACC312 – Case Study 3.1.1– Recovery Plan 2

3.1.2: Roleplaying Activity
For this activity, there is no specific script to be followed. However, you must demonstrate that you have facilitated the realisation of the different debtors’ reasons for non-payment and where applicable, make payment arrangements with the debtors.
Ensure to follow the timelines specified in the Recovery Plans you completed in the previous task. You must complete this task and submit the required evidence within the timeline defined in the Recovery Plans.
Follow the steps outlined below as your guide to completing this activity.
Read all instructions carefully before starting.
Resources required
To complete this roleplaying activity, you will need
?
Three (3) volunteers to play
? Kevin Smith
? Kal Cairns
? Volunteer in lieu of Dylan Ackles
?
A safe environment to conduct the roleplaying activity in (e.g. living room of your house)
?
Character brief

Steps to take
a. Review the Customer Credit Policy. This will assist your discussion in the activity.
b. Read and access the Character Brief. Provide your volunteers a copy of the Character Brief before you conduct the roleplaying activity. You can access this here:
FNSACC312 Character Brief
(Username: newusername Password: newpassword)
c. Review the assessment criteria for the roleplaying activity Assessor’s Checklist found below. Note that you must demonstrate ALL of the criteria items outlined in this checklist. Guidance is also provided in the checklist to help you complete this activity.
FNSACC312 – Case Study 3.1.2 – Roleplay
Roleplaying Activity – Assessor’s Checklist
(The candidate is to leave this blank. This is for the assessor’s use only.)
the candidate… YES NO Assessor’s Comments
1. Introduce themselves as the candidate taking the assessment.
Guidance: You may simply state your name and confirm that you are the one completing the assessments in this assessment workbook. ?
?


the candidate… YES NO Assessor’s Comments
2. Follow the Customer Credit Policy provided for this case study. ?
?

3. Demonstrate active listening skills by:
• Asking questions
• Responding appropriately ?
?

KEVIN SMITH
the candidate… YES NO Assessor’s Comments
1. Introduce themselves by stating:
? Their name
? The company they represent
? That they are looking for a specific debtor
Guidance: The candidate must not immediately disclose that the call is about a debt and try to schedule a meeting or a call with the debtor or check for the debtor’s availability. The candidate must be courteous at all times. ?
?

2. Make an arrangement for the debtor to pay outstanding monies.
Guidance: The candidate’s discussion must meet the status of the debtor as provided in the Character Brief. ?
?


KAL CAIRNS
the candidate… YES NO Assessor’s Comments
1. Introduce themselves by stating:
? Their name
? The company they represent
? That they are looking for a specific debtor
Guidance: The candidate must not immediately disclose that the call is about a debt and try to schedule a meeting or a call with the debtor or check for the debtor’s availability. The candidate must be courteous at all times. ?
?

2. Make an arrangement for the debtor to pay outstanding monies.
Guidance: The candidate’s discussion must meet the status of the debtor as provided in the Character Brief. ?
?


DYLAN ACKLES
the candidate… YES NO Assessor’s Comments
1. Introduce themselves by stating:
? Their name
? The company they represent
? That they are looking for a specific debtor
Guidance: The candidate must not immediately disclose that the call is about a debt and try to schedule a meeting or a call with the debtor or check for the debtor’s availability. The candidate must be courteous at all times. ?
?

2. Make an arrangement for the debtor to pay outstanding monies.
Guidance: The candidate’s discussion must meet the status of the debtor as provided in the Character Brief. ?
?


3.1.3: Written Questions
Steps to take
1. Answer the following question:
a. Which customers would you call to assess reasons for non-payment and attempt negotiation for a payment plan? Explain your answer.
0
Dylan Ackles
0
Kevin Smith
0
Kal Cairns
0
None of the above
Explain your answer


Steps to take
2. Consider the following information.
On 15 May, 15 days after your initial attempt to contact the customers, you made another round of phone calls:
a. Kevin Smith informed you that he might be officially declaring bankruptcy within the next 30 days
b. Kal Cairns is willing to pay the amount owed upon redoing of the treatment for dental trauma but does not want to pay any other fees.
c. Dylan Ackles seems to have moved residence. When you called his home number, another man answered your call explaining that he does not know of any “Dylan Ackles” and is just new in the neighbourhood.
3. Classify the debts as bad debts, doubtful debts, or neither. Justify your answer.
In the spaces provided for you below, write:
? B for bad debt
? D for doubtful debt
? N for either.

Kevin Smith

Kal Cairns

Dylan Ackles
Explain your answers
a.
b.
c.
3.2: Debt Collection
Assume that the date is now 31 May 2017, you have completed the preliminary steps to recover from the debtors but they have not complied with your request and no payment has been made for the three (3) accounts listed on your 31 May report.
The following steps were previously done as per the Customer Credit Policy:
? Kevin Smith
A letter went out at 30 days and then a letter of demand was sent to the customer asking for payment within 14 days.
A spreadsheet/report is prepared documenting the accounts receivable debt, recovery type, cause and recovery plan and ratified by the business owner.
? Kal Cairns
The first collection letter notifying the intention to take action and review was sent out at 30 days.
Steps to take
1. Following the Policies and Procedures, describe how would you handle the recovery of these overdue accounts.
Specify the number of days overdue How to handle the recovery of overdue accounts
Kevin Smith
days overdue

Kal Cairns
days overdue

Dylan Ackles
days overdue


Steps to take
2. After your initial review on June 20, you’ve found that Kevin Smith is past 90 days overdue. Prepare a recovery report for Kevin Smith. Use the template provided below.
RECOVERY REPORT – TO BE SENT TO OWNER
DEBTOR NAME Kevin Smith
OUTSTANDING AMOUNT
NUMBER OF DAYS OUTSTANDING
DEBTOR’S EXPLANATION FOR NOT PAYING
(INCLUDE DATES OF CONTACT)
RECOVERY STAGE
(E.G. 90+ DAYS, 60-90 DAYS)
DATE FOR REVIEW OF RECOVERY ACTIONS

3.3: Collection
3.3.1: Letter of Demands
Considering the organisation’s procedures for debt recovery, write two (2) letters of demand requesting payment from Kevin Smith and Kal Cairns.
Steps to take
1. Access the following templates for the letter of demands you are required to write in this task:
Letter of Demand (Kevin)
Letter of Demand (Kal)
(username: newusername password: newpassword)
2. Complete the templates with the required information.
3. Save and submit the two (2) completed letter of demands using the following filenames:

FNSACC312 – Case Study 3.3.1 – Letter of Demand (Kevin)

FNSACC312 – Case Study 3.3.1 – Letter of Demand (Kal)

3.3.2: Written Questions
Steps to take
1. Answer the following questions.
a. ASIC and ACCC have released their “Debt collection guideline for collectors and creditors”.
At what times can the collector contact the debtor in their workplace if the debtor’s exact working hours is unknown?
0
9am to 5pm weekdays.
0
Any day between 9am to 5pm
0
8am to 6pm weekdays
0
Any time except weekends
b. How does Clause 10 The Fundamental Principles of the ICB Professional Code of Conduct affect you as a bookkeeper when dealing with customers with overdue accounts?
0
You must never reveal your identity or purpose of calling unless you have verified that you are speaking to the debtor.
0
You may only reveal details of the debt to immediate family members.
0
You must at all times be courteous to all those with whom you have professional dealing.
0
None of the above.

c. Briefly outline your organisation’s procedures for conducting client follow-ups for outstanding payments.

d. Review all activities and communication conducted so far with the three (3) clients in Case Study 3.
Are the follow-up procedures outlined by your organisation sufficient for the collection of your clients’ outstanding payments? Why or why not?


e. Review all activities and communication conducted so far with the three (3) clients in Case Study 3.
Have you and your organisation exhausted all possible avenues for recovering the outstanding payment? Why or why not?

3.4: Writing off Bad Debts
The business has been notified that Kevin Smith has gone into bankruptcy and there is little chance of recovering the amount owing.
For reporting purposes only.
Using the MYOB file, you are working with, assume that you are to write off the amount owing as bad debt on the last day of the current month.
? Settle this adjustment against the original invoices
? Save and submit a screenshot of the settled adjustment as shown below.

Part 4: Supplementary Reports
4.1: Save as pdf format Reports
Steps to take
1. Save as pdf format copy of the following reports.
Save and submit the documents as shown below.
a. All transaction journals for the whole month of May.

FNSACC312 – Case Study 4.1 Reports – All Transactions
b. balance Sheet on the last day of May.
FNSACC312 – Case Study 4.1 Reports – Balance Sheet
c. Profit and Loss for the month of May.

FNSACC312 – Case Study 4.1 Reports – Profit and Loss

Olivia Reins Dental Group Record-Keeping Policy
The Olivia Reins Dental Group complies with all record-keeping requirements and keep accurate records of all financial transactions made in the course of business.
To ensure compliance with these requirements, all records and documents relating to the organisation’s financial transactions are safely and securely kept, with access to these limited to authorised personnel only.
Physical copies of records and documents are saved in a locked file cabinet in the Accounting Department.
Digital copies of records and documents are saved in the dedicated Accounts computer. These are to be saved in a separate folder using the filename “[Month]-[Year]-Accounts Documentation.”
All file folders must be password-protected.
4.2: File Documentation and Distribute Reports
Steps to take
1. Save all evidence submissions for this unit according to the organisation’s record-keeping policy and procedures.
Use the password ‘OliviaReins’ in the file folder.
2. Upload your file folder to a cloud storage service of your choice (e.g. Google Drive, Dropbox, etc.).
3. Using the simulated email template on the following pages, distribute the MYOB reports to the personnel listed below by sending them a link to your cloud storage folder.
Personnel Email Address
Terrence Malone (Accounting Department Head) terrence@oliviareinsdentalgroup.com.au
Jeff Serns (Accounts Manager) jeff@oliviareinsdentalgroup.com.au
Kyna Sanchez (Accounts Team Leader) kyna@oliviareinsdentalgroup.com.au
(continued on the next page)
(continued)
Personnel Email Address
Hazel Mercator (Collections Supervisor) hazel@oliviareinsdentalgroup.com.au
Aaron Mann (Bookkeeper) aaron@oliviareinsdentalgroup.com.au
Erika Reed (Chief Financial Officer) erika@oliviareinsdentalgroup.com.au
Use the subject ‘MYOB Reports’ and ensure to attach the link to your cloud storage folder in your message.
To
Subject
Message